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ADNOC Signs Deals Worth $4.6 Billion

ADNOC Signs Deals Worth $4.6 Billion

Friday, 3 February, 2023 - 09:45
An ADNOC facility in the UAE. (Asharq Al-Awsat)

The Abu Dhabi National Oil Company (ADNOC) has signed agreements with at least 23 leading domestic and international companies for manufacturing opportunities across multiple industrial products valued at 17 billion dirhams ($4.63 billion).

“The agreements outline the intention of the companies to manufacture these products in the UAE, supporting the ‘Make it in the Emirates’ initiative,” according to ADNOC.

ADNOC noted that deals awarded are “a part of the 70 billion drihams ($19 billion) worth of products in ADNOC’s procurement pipeline that the company identified for domestic manufacturing in July 2022”.

The company has been encouraging the private sector to capitalize on the commercial opportunities for domestic manufacturing across its value chain through its In-Country Value (ICV) program, as it expands and decarbonizes its operations.

Saleh Al Hashimi, ADNOC’s director for commercial and in-country value, said the company “is creating long-term domestic manufacturing opportunities from its procurement pipeline to enhance the UAE’s industrial base and strengthen the resilience of its supply chains”.

“These agreements reinforce our role as a critical engine for the UAE’s industrial growth and they offer significant potential to further stimulate economic diversification and create more skilled job opportunities for UAE nationals,” said Al Hashimi.

“We look forward to working with these companies to deliver on these important agreements and drive more sustainable value to the UAE.”

Last year, the energy company signed agreements for local manufacturing commitments worth over 25 billion dirhams ($6.8 billion) with UAE and international companies.

It continues to use a transparent approach in announcing its production forecasts as part of its In-Country Value program, said ADNOC.

The approach confirms ADNOC’s efforts to motivate investors and suppliers to establish manufacturing capabilities in the UAE and contribute to the expansion of the existing ones.

As part of a new five-year plan, ADNOC aims to channel 175 billion dirhams ($48 billion) back into the Emirates' economy through its ICV program.

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